The Board of Directors of Garment Mantra Lifestyle approved the withdrawal of its capital contribution in Twenty Twenty Trading LLP during a meeting held on July 28, 2026. The company will withdraw an investment aggregating to ₹37,000 from the limited liability partnership. This move marks the exit of the listed entity from its stake in the trading firm, with the transaction structured as a related-party deal involving a promoter group member.

The proposal was considered and approved in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with the SEBI circular dated September 9, 2015. The Board also ensured adherence to the applicable provisions of the Companies Act, 2013. The meeting commenced at 10:30 a.m. and concluded at 12:10 p.m.

Transaction Details

The withdrawal involves the disposal of the company’s interest in Twenty Twenty Trading LLP to Mrs. Shikha Aggarwal. The filing confirms that Mrs. Aggarwal belongs to the promoter group of Garment Mantra Lifestyle Limited. Consequently, the transaction falls under the category of related-party transactions. However, the company disclosed that the deal is being entered into at arm's length.

Financial Impact and Timeline

According to Annexure A of the disclosure, Twenty Twenty Trading LLP contributed no income or net worth to Garment Mantra Lifestyle Limited during the last financial year ended March 31, 2026. The figures for both income and net worth were reported as nil. Therefore, the withdrawal does not impact the company’s revenue or net worth metrics for FY26.

The agreement for the sale has not been formally entered into yet; instead, the LLP agreement is to be modified accordingly. The company expects to complete the disposal within six months from the date of the board meeting, i.e., by January 28, 2027. The consideration received for the disposal will be not less than ₹37,000.

What the Numbers Show

The negligible financial footprint of Twenty Twenty Trading LLP is evident from its zero contribution to income and net worth in FY26. This suggests that the LLP was likely dormant or inactive from a revenue-generation perspective during the last fiscal year. The decision to withdraw the ₹37,000 capital contribution appears to be a housekeeping measure to streamline the corporate structure rather than a strategic divestment driven by financial performance. Since the buyer is part of the promoter group, the transaction also facilitates internal restructuring within the promoter’s holdings without affecting external shareholders’ economic interests materially.

Garment Mantra Lifestyle reported a consolidated net profit of ₹2.79 crore for the quarter ended June 30, 2026 (Q1FY27), rising 13% year-on-year from ₹2.47 crore. Revenue from operations jumped 67% to ₹61.97 crore, driven by robust domestic demand and an expanding export order book. Crucially, the company turned its EBITDA positive at ₹4.39 crore, reversing a loss of ₹5.79 crore in the previous quarter, signaling improved operational efficiency alongside top-line growth.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 28, 2026, pursuant to Regulation 30(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors Balaji & Thulasiraman issued an unmodified limited review report. The Board also appointed Mr. B. Venkateswar as the Cost Auditor for the financial year 2026-27.

Financial Performance

Consolidated other income rose sharply to ₹4.97 crore from ₹0.76 crore in Q1FY26, contributing to total income of ₹66.94 crore. Total expenses stood at ₹63.37 crore, compared to ₹36.53 crore in the prior year’s quarter. Profit before tax reached ₹3.58 crore against ₹3.34 crore in Q1FY26. The quarterly earnings per share (EPS) stood at ₹0.05, compared to a loss of ₹0.12 in Q4FY26.

Standalone net profit was ₹1.03 crore, down from ₹2.01 crore in Q1FY26, primarily due to lower other income and higher material costs. Standalone revenue declined 5% to ₹20.13 crore from ₹21.18 crore in the prior year period.

Order Book and Outlook

As of the reporting date, the consolidated unexecuted order book stood at approximately ₹35 crore, with more than ₹30 comprising confirmed export orders. Management attributed the strong start to FY27 to extended summer demand across India, which boosted off-take in domestic distribution channels. Geopolitical shifts are also accelerating global supply chain diversification toward India, benefiting the company’s export business.

What the Numbers Show

The divergence between standalone and consolidated performance highlights subsidiary contribution. While standalone operations faced margin pressure with revenue declining 5%, consolidated revenue surged 67%, driven by subsidiaries Hylex Fashions Private Limited and Twenty Twenty Trading LLP. These entities contributed ₹1.76 crore in net profit after tax for the quarter. Additionally, the sharp QoQ turnaround in EBITDA—from a ₹5.79 crore loss to a ₹4.39 crore profit—suggests significant operational improvements or favorable product mix shifts in the current quarter, distinct from the prior period’s challenges.